Quantum Capital Group has completed the acquisition of Caerus Oil and Gas for nearly $1.8 billion (including debt and other liabilities).
As part of the transaction, Denver, Colorado-based private operator Caerus will transfer its assets in the Uinta and Piceance basins to two portfolio companies of Quantum Capital.
QB Energy, a newly formed portfolio company, will take control of the 600,000 acre upstream and midstream assets in Colorado’s Piceance Basin. Meanwhile, KODA Resources will take control of the 160,000 acre upstream and midstream assets in Utah’s Uinta Basin.
Caerus states on its website that it operates more than 7,400 producing wells and owns over 5,300 undeveloped drilling locations. Founded in 2009, Caerus expanded its position in the Piceance Basin by acquiring Encana’s acreage in 2017 and further strengthened its portfolio by purchasing Occidental Petroleum’s Uinta assets in 2020. The company’s daily production is approximately 600 MMcfe/D.
“This transaction represents a unique opportunity for Quantum to invest in large-scale natural gas production and develop large, contiguous acreage containing significant hydrocarbon resources with significant value-add potential. We believe KODA and QB Energy are well positioned to lead the next phase of development and operation of the assets to responsibly serve the natural gas demand centers of the Western United States while generating attractive returns for our investors,” said Tom Field, partner at Quantum, in a statement.
The announcement also highlights that Caerus pioneered the use of sand-free hydraulic fracturing in Colorado and Utah, applying the technique to more than 500 wells. This approach has reportedly reduced the company’s reliance on truck and rail transportation while achieving record productivity results, although no specific details were provided. In addition, Caerus has built a facility that uses 100% recycled water in its well stimulations.
The deal follows a $3 billion acquisition of Cogentrix Energy by Quantum Capital in early August. Cogentrix operates 11 natural gas power plants in the United States with a total capacity of 5.3 GW.
